Leapstack has raised nearly 200 million RMB in Series C+ Funding, building a diversified technological value chain for health insurance

Rhea-AI Summary

Leapstack, an insurtech company, secured 200 million RMB yuan in Series C+ Funding, led by Qiming Venture Partners, with participation from Soochow Yihe Capital and existing shareholder Legend Capital. The company specializes in digital solutions for medical insurance, catering to various enterprises. The Chinese health insurance market is growing, driving the need for digital services. Leapstack is dedicated to digital transformation and cost control, offering intelligent audit systems and digital platforms for commercial insurance. It has been actively involved in government-led medical insurance supervision programs and is expanding internationally. Leapstack aims to become a world-class technology platform for insurance.

Insights

Market Research Analyst

Leapstack's recent Series C+ funding of 200 million RMB yuan signifies a robust vote of confidence from venture capital firms in the insurtech sector. This is indicative of the sector's growth potential, especially in the context of China's increasing urbanization, aging population and rising health insurance awareness. The insurance industry's digital transformation is accelerating, with insurtech companies like Leapstack playing a vital role in streamlining operations through technologies such as AI and big data analytics. Leapstack's focus on cost control and digital services positions it competitively in a market where there is a strong demand for efficient and transparent health insurance solutions. This funding round could potentially lead to an expansion of Leapstack's market share and foster innovation in its product offerings, ultimately impacting the broader health insurance landscape in China and potentially other markets where the company is expanding its presence.

Financial Analyst

The infusion of capital into Leapstack suggests a positive outlook for investors and stakeholders. The company's emphasis on intelligent audit systems and automated operation engines aims to deliver cost savings and efficiency gains, which can translate into improved margins and profitability. Leapstack's strategic involvement in government-led medical insurance supervision programs further strengthens its market position and could lead to more stable revenue streams. Additionally, Leapstack's expansion into international markets such as Vietnam, Indonesia and planned entries into Thailand and Singapore could diversify its revenue sources and reduce geographic concentration risk. However, investors should monitor the execution of Leapstack's international strategy and the integration of its digital solutions into diverse healthcare systems.

Healthcare Technology Analyst

Leapstack's 'digital risk control for health insurance' model exemplifies the innovative approaches being adopted within the insurtech space. The company's development of a comprehensive range of data products tailored to the health insurance industry showcases its commitment to addressing the unique challenges faced by insurers. The integration of digital services across government and commercial insurance sectors not only enhances operational efficiency but also promotes access to quality medical services. Leapstack's efforts to innovate payment methods and improve health guarantees could lead to a more sustainable and patient-centric healthcare ecosystem. The company's success in creating a diversified technological value chain for health insurance will likely serve as a benchmark for digital transformation in the sector.

SHANGHAI, Jan. 18, 2024 /PRNewswire/ -- Leapstack, a prominent insurtech company, recently secured an impressive 200 million RMB yuan in Series C+ Funding, led by Qiming Venture Partners. The funding round also saw active participation from Soochow Yihe Capital, and existing shareholder Legend Capital, with exclusive financial advisory services provided by MountainView Capital. As a technology-driven enterprise, Leapstack specializes in cutting-edge digital solutions for medical insurance. The company offers comprehensive digital solutions catering to government health insurance departments, commercial insurance companies, medical/nursing institutions, as well as pharmaceutical and medical device companies, among other enterprises.

Since its establishment in 2016, Leapstack has successfully completed multiple funding rounds, boasting a robust shareholder portfolio that includes Gaorong Capital, Fomou Assets, DCM, Puhua Capital, Danhua Capital, Lingfeng Capital, FinVolution Group (NYSE: FINV), Uphonest Capital, 360 DigiTech (NASDAQ: QFIN), Legend Capital, Peakview Capital, GF Qianhe Investment and Huazhi Capital, etc.

The growing urbanization, changes in the aging population structure, as well as the increase in both medical expenses and health insurance awareness, have resulted in the continuous rise of rigid demand for health insurance in China. In this context, the insurance industry, especially health insurance, is undergoing the digital transformation, with an active participation of technology enterprises in becoming more "automated." Technologies like artificial intelligence and big data are changing the entire value chain, including product development, pricing, distribution, operations, underwriting, and claims processing. In 2022, the premiums for health insurance in China reached 865.2 billion yuan. Such a substantial market size underscores the essential need for corresponding digital services, making it imperative for insurtech enterprises to seize opportunities strategically. In addition, it attracts attention from all parts of the industry towards how to accelerate a successful digital transformation of medical insurance and commercial insurance.

Taking the innovation and expansion of business as an example. With the continual exploration and implementation of cutting-edge technologies and the dynamic shifts in consumer trends, new consumer demands are driving fundamental changes in health insurance types, product content, business models, and industry ecosystems. As one of the technology enterprises that started digital transformation of health insurance early, Leapstack has consistently prioritized cost control and digital services at the core of its business strategy. On one hand, Leapstack has developed an intelligent audit system. Through the establishment of an in-house medical insurance fund supervision team, it employs a smart online audit + random offline inspection to serve as a robust safeguard for the public's medical expenses. On the other hand, for digital services, Leapstack furnishes commercial insurance enterprises with an all-encompassing digital platform. Leveraging its in-house automated operation engine, seamlessly integrated with big data risk analysis, Leapstack establishes a closed loop of efficiency and fee control. This empowers the entire insurance claims process, resulting in reduced costs and increased efficiency.

It is reported that Leapstack has been actively involved in the medical insurance supervision programs led by the government, including major supervision programs for medical insurance fund at the national or provincial level, the operation welfare projects in dozens of cities, and the operation services for long-term care. Up till now, it has served medical insurance bureaus and relevant regulatory agencies in over ten provinces and 100+ cities across the country, allowing the public to access more convenient, fair and accessible medical insurance services.

In comparison to a decade ago, the insurance industry has undergone a revolutionary transformation in digitization. With the growth of the health insurance market and policy incentives, there is an increasingly prominent application demand for big data, cloud computing, robotic process automation (RPA), and large-scale modeling technologies in this sector. Leapstack, holding its position in the development, dedicates itself to health insurance. It pioneers the model of "digital risk control for health insurance," effectively facilitating the digital integration of policy-based medical insurance and commercial health insurance. By bridging actuarial, product design, underwriting, claims process, customer service, and other operational processes, it achieves collaborative dynamic risk control throughout the product lifecycle. Such digital empowerment facilitates innovative product design, rational pricing, and refined operations.

Over several years of dedicated development, Leapstack has centered its efforts on addressing the specific needs of the insurance business. This commitment has culminated in the comprehensive creation of a range of data products, including a big data risk control system for health insurance, a processing system for long-term care insurance, a service system for critical illness medical insurance, a claims system for commercial health insurance, and a chronic disease management system for health insurance. As Leapstack empowers digital services in government medical insurance and commercial insurance through technological advancements, it is concurrently pursuing expansion into the medical care and health industry. Through the integration of the enterprise, medical, and pharmaceutical scenarios, and the connection among quality medical resources, Leapstack aims to achieve effective access to quality medical services and innovative diagnosis and treatment solutions. By innovating payment methods, Leapstack contributes to the enhancement of effective and quality medical services, progressively improving health guarantees.

In response to the expanding market and rapid business growth, Leapstack has successfully concluded product development and solution construction for various business scenarios. At the same time, as a pioneer in China's insurtech sector exploring international markets, Leapstack has launched its business in Vietnam, Indonesia and other markets over the past two years. As outlined in its strategic roadmap, Leapstack envisions a substantial expansion of its overseas business over the next three to five years. Leapstack is poised to make an entry into the Thai and Singaporean markets, aiming to spearhead technological integration throughout the entire Southeast Asian region through the implementation of innovative business models. Throughout the process of high-quality development, Leapstack remains true to its original mission, persistently aligning with the national strategic direction.

In the Health 3.0 era, insurance and medical services will go hand-in-hand to finish digital transformation, and the business models become multidimensional. With a sound domestic market share and its expansion in the overseas market, Leapstack is sure to gain new impetus for furthering its insurance business in the Asia-Pacific market. Going ahead, Leapstack will continue to play a pivotal role in transforming health insurance, advancing the development of robust big data models, and improving comprehensive operational services. Through these efforts, Leapstack remains committed to becoming a world-class technology platform for insurance, leveraging technologies to safeguard health guarantee.

 

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SOURCE Leapstack

FAQ

What is the recent Series C+ funding secured by Leapstack?

Leapstack secured an impressive 200 million RMB yuan in Series C+ Funding, led by Qiming Venture Partners, with participation from Soochow Yihe Capital and existing shareholder Legend Capital.

What does Leapstack specialize in?

Leapstack specializes in digital solutions for medical insurance, catering to government health insurance departments, commercial insurance companies, medical/nursing institutions, pharmaceutical and medical device companies, among other enterprises.

What is driving the need for digital services in the health insurance industry in China?

The growing urbanization, aging population structure, and increased medical expenses and health insurance awareness are driving the need for digital services in the health insurance industry in China.

How is Leapstack involved in digital transformation and cost control for health insurance?

Leapstack prioritizes cost control and digital services at the core of its business strategy. It offers intelligent audit systems and digital platforms for commercial insurance, aiming to reduce costs and increase efficiency.

What international markets has Leapstack expanded into?

Leapstack has launched its business in Vietnam, Indonesia, and other markets over the past two years, with plans to expand into the Thai and Singaporean markets in the next three to five years.